US-Iran Conflict Still Impacts Corporate IPOs, Regulators Focus on Inquiries About Overseas Risks, Some Projects Delayed

Caixin News, March 15 — (Reporter Zhao Xinrui) The escalation of conflict between Iran and the U.S. has impacted the IPO market. Among them, companies planning to go public with a high proportion of revenue from the Middle East have been closely questioned about the potential impact of the conflict on their performance; at the same time, many international IPO projects have postponed their listing roadshows and original issuance plans, showing a cautious wait-and-see attitude.

In this market context, two companies scheduled for review this week both have a high or dependent share of overseas market revenue, and were closely scrutinized for related risks during their review.

On March 12, Guosen Securities-sponsored Xinsheng Technology was reviewed by the Beijing Stock Exchange for an IPO, marking its second review this year. When it first reviewed on January 16, regulators focused on the company’s overseas market risks, requiring explanations on whether demand growth in markets such as India and Pakistan is sustainable.

On March 13, GF Securities-sponsored Jiadeli on the Shanghai Main Board also successfully passed the review. Unlike Xinsheng Technology, this was Jiadeli’s first review, coinciding with a critical point of escalation in the US-Iran conflict, making the inquiry more targeted. Regulators asked the issuer to explain, based on dependence on overseas raw materials and equipment, recent geopolitical developments, supply and price fluctuations of key raw materials, core competitive advantages, supplier switching cycles, and cost transmission capabilities, whether there is a risk of significant decline in operating performance.

Market volatility caused by the US-Iran conflict continues, and investor sentiment has become more cautious. Although companies in defense technology and related fields may accelerate their listing process leveraging industry benefits, most IPO candidates have postponed their plans due to soaring oil prices, supply chain concerns, and high geopolitical uncertainty, maintaining a wait-and-see stance.

Overseas Market Risks Are a Focus of Regulatory Attention

As the US-Iran conflict intensifies, geopolitical and overseas dependence have become core questions in regulatory inquiries for IPO candidates.

The first company reviewed this week was Xinsheng Technology, which was accepted on June 26, 2025. It underwent two rounds of inquiries within half a year and had its first review on January 16, 2026. Subsequently, regulators issued further feedback on January 19, and on March 5, the issuer completed its responses. On the same day, a second review notice was issued, highlighting a tight listing schedule.

According to the prospectus, the company mainly engages in the research, production, and sales of computer embroidery machines, with products divided into flat embroidery machines and special machines based on embroidery techniques. Notably, the prospectus explicitly warned of risks related to geopolitical conflicts and trade frictions involving major export markets. The company’s export revenue exceeds domestic revenue, with key clients mainly in India and Pakistan, which have long been the top two customers.

Specifically, the markets in India and Pakistan contribute significantly to the company’s revenue. Data shows that sales to Pakistani customers were 89.7 million yuan, 50.9 million yuan, 161 million yuan, and 85.6 million yuan in different periods, accounting for 15.73%, 7.64%, 16.22%, and 13.44% of main business revenue respectively; sales to Indian customers were 117 million yuan, 155 million yuan, 238 million yuan, and 156 million yuan, accounting for 20.47%, 23.31%, 24.00%, and 24.43% respectively.

However, geopolitical conflicts between India and Pakistan occurred in April-May 2025, but due to their short duration and limited scope, the company’s orders from these clients were not significantly affected.

Meanwhile, Jiadeli on the Shanghai Main Board, also reviewed this week, was scrutinized for overseas risks.

According to the prospectus, the company’s raw materials are mainly purchased from Bolu, a distributor of Nordic chemical resin materials in China, shipped from a Belgian port via the Cape of Good Hope route. Additionally, the prices of key raw materials are linked to crude oil and propylene prices, which could fluctuate significantly due to geopolitical factors, supply and demand, or emergencies. Equipment suppliers include German company Brückner, from which the company procures eight BOPP production lines, including three online.

This indicates prominent risks related to overseas supply and trade policies. The review also focused on the company’s dependence on overseas sources, raw material supply and price fluctuations, and geopolitical risks.

It is noteworthy that although both companies successfully passed the review, overseas market risks are becoming routine concerns in domestic regulatory reviews. Compared to this, some overseas IPO projects have already been impacted by geopolitical developments.

Some International IPOs Postponed Due to US-Iran Conflict

The escalation of the US-Iran conflict has not only affected domestic IPO candidates but also impacted international IPO plans for 2026.

One example is online travel agency Loveholidays, which planned to list in London in early March 2026, regarded as the first major IPO project on the London Stock Exchange in 2026. However, as the US-Iran situation worsened, causing turmoil in Gulf region tourism—with over 10,000 flights canceled, including flights to Dubai—Loveholidays had to postpone its listing.

It was reported that the company initially planned to announce its IPO in early March, with a target valuation of up to 1 billion pounds. After postponement, it may reschedule for the peak travel season after Easter. Some foreign sources say the company still hopes to list in London, but with industry peers selling off, whether now is the right time remains under discussion. This highlights the cautious attitude and timing dilemmas faced by international IPO candidates amid Middle East conflicts.

Similarly, Brazil’s IPO plans have been affected. Market sources indicate that BRK Ambiental Participações, Brazil’s largest water utility, is considering delaying its IPO, originally planned to raise about 4 billion reais (roughly 5.2 billion RMB), which would be Brazil’s first large IPO since 2021. If successful, it would end a four-year hiatus in Brazil’s IPO market.

Analysts believe that the core reason for the delay is the global market sell-off triggered by escalating tensions in the Middle East, combined with the company’s own operational factors, forcing a slowdown in the listing process.

Impact of US-Iran Conflict on the Global IPO Market

Currently, as geopolitical tensions continue to escalate, whether the US IPO market will slow down has become a focus of discussion.

In response, Lynne Martin, President of NYSE Group, recently stated that geopolitical tensions are unlikely to hinder IPOs. Despite ongoing changes in geopolitical situations, well-prepared companies can still access the public markets. While geopolitical risks are a factor to consider when planning an IPO, they are not decisive.

Foreign investment banks’ analysis shows that private equity and other investment firms remain optimistic about global acquisitions and IPOs, closely monitoring geopolitical developments.

Vikram Chawla, head of financial sponsorship at Citigroup Asia-Pacific, pointed out that private equity, infrastructure funds, sovereign wealth funds, pension funds, family offices, and hedge funds are holding large amounts of capital seeking suitable investment channels for returns. Currently, these institutions are in discussions with companies, including considering entering the Hong Kong IPO market. The main reason is that Chinese assets offer attractive valuations, and investors are keen on sectors like consumer goods, healthcare, technology, AI, and industrials, which also influences foreign capital deployment.

Overall, the future of the US IPO market will continue to depend on the evolution of geopolitical tensions and the pace of corporate listings, requiring ongoing observation.

(Caixin News, Reporter Zhao Xinrui)